You might be worried about your finances and have fallen behind on mortgage payments, rent payments, or your bills. You may have gone over your options on what to do and have discovered that bankruptcy is the best option to help you clear your debts. While bankruptcy is a serious blow to your finances and credit rating, it can help you rebuild your finances over time and also rebuild your credit score.
What can you expect to happen when you file for bankruptcy? The first thing you should do is to hire a lawyer who is knowledgeable and skilled in bankruptcy law to help you. They can guide you through all the steps and prevent any possible issues down the road.
Assets And Your Financials Will Be Assessed
When you file for bankruptcy, you will work with your lawyer on going through all your assets and financials to see what can be exempt and what will be included in the debt discharge.
If you own a home and have gotten behind in your mortgage payments, it's possible that your home might be put up for sale in the form of a foreclosure or short sale so the bank can retrieve its money. If you have enough equity in the home, however, it may be possible to re-negotiate the mortgage payments to lower them, thereby saving your home from foreclosure.
You will need to provide your annual income, how much you make monthly, and what your expenses are. You may have some debts that are not dischargeable through bankruptcy such as student loans according to the bankruptcy law in your state.
Once your assets and financials are assessed, the courts will determine what can be discharged and what you will still need to pay.
You Will Have Multiple Court Dates
Once you have filed for bankruptcy, you will then be assigned multiple court dates and hearings which you must attend. These hearings and court dates following bankruptcy law are there to determine which assets can be sold off, by what means, and the length of time it should take from when the order to sell off the property is given by the courts, to when the asset is sold and the money provided to the creditors.
These court dates will also go over which debts can't be discharged and the courts will hear about any re-payment plan you and your lawyer have worked out with your creditors. Courts can also design plans for you that will see re-payment made but will not put you in any further hardship financially.
Contact a local bankruptcy lawyer to learn more about your case.Share